A Bill for an Act
Page 1, Line 101Concerning the creation of an income tax credit for the
Page 1, Line 102purchase of a device capable of locking that safely
Page 1, Line 103stores firearms.
Bill Summary
(Note: This summary applies to this bill as introduced and does not reflect any amendments that may be subsequently adopted. If this bill passes third reading in the house of introduction, a bill summary that applies to the reengrossed version of this bill will be available at http://leg.colorado.gov.)
The bill creates a new income tax credit in an amount equal to the purchase price of a firearm safety device, not to exceed $200, that is purchased by an eligible taxpayer from a federally licensed dealer (credit). A firearm safety device is a device that is designed or can be used to store a firearm and is designed to be unlocked only by means of a key, a combination, or by other similar means. The credit is available for income tax years 2027 and 2028, and if the amount of the credit exceeds the eligible taxpayer's tax liability, the credit may be carried forward for a period of 5 income tax years. In addition, the maximum amount of aggregate credits that can be claimed in an income tax year is $5 million.
Page 2, Line 1Be it enacted by the General Assembly of the State of Colorado:
Page 2, Line 2SECTION 1. In Colorado Revised Statutes, add 39-22-131 as follows:
Page 2, Line 339-22-131. Tax credit for purchase of gun safety device - tax
Page 2, Line 4preference performance statement - legislative declaration -
Page 2, Line 5definitions - rules - repeal. (1) (a) The general assembly finds and declares that:
Page 2, Line 6(I) Responsible owners of firearms secure their firearms by using gun safes or locks; and
Page 2, Line 7(II) Colorado law requires gun locks with the purchase of
Page 2, Line 8firearms, but an income tax credit for the cost, or a portion of
Page 2, Line 9the cost, of purchasing a firearm safety device, such as a gun
Page 2, Line 10safe, will assist firearm owners who want to further secure their weapons to afford such a large expense.
Page 2, Line 11(b) In accordance with section 39-21-304 (1), which
Page 2, Line 12requires each bill that creates a new tax expenditure to include
Page 2, Line 13a tax preference performance statement as part of a statutory
Page 2, Line 14legislative declaration, the general assembly finds and
Page 2, Line 15declares that the purpose of the tax credit provided in this
Page 2, Line 16section is to induce certain designated behavior by taxpayers,
Page 2, Line 17specifically the purchase of firearm safety devices to encourage
Page 2, Line 18the safe storage of firearms.
Page 3, Line 1(c) The general assembly and the state auditor shall
Page 3, Line 2measure the effectiveness of the credit in achieving the purpose
Page 3, Line 3specified in subsection (1)(b) of this section based on the number of credits claimed.
Page 3, Line 4(2) As used in this section, unless the context otherwise requires:
Page 3, Line 5(a) "Department" means the department of revenue.
Page 3, Line 6(b) "Eligible taxpayer" means a resident individual subject to tax under this article 22.
Page 3, Line 7(c) "Eligible transaction" means the transaction by which
Page 3, Line 8an eligible taxpayer purchases one or more firearm safety
Page 3, Line 9devices from a dealer that is federally licensed pursuant to 18
Page 3, Line 10U.S.C. sec. 923. An "eligible transaction" does not include the purchase of a firearm.
Page 3, Line 11(d) "Firearm" or "gun" means a firearm as defined in
Page 3, Line 12sections 18-1-901 (3)(h) and 18-12-506 (2) and any instrument or device described in section 18-12-101 (1)(b.7).
Page 3, Line 13(e) "Firearm safety device" means a safe, gun safe, gun
Page 3, Line 14case, lock box, or other device that is designed to be or can be
Page 3, Line 15used to store a firearm and that is designed to be unlocked only by means of a key or a combination, or by other similar means.
Page 3, Line 16(f) "Purchase price" has the same meaning as set forth in section 39-26-102 (7).
Page 3, Line 17(3) (a) Subject to subsection (3)(b) of this section, for any
Page 3, Line 18income tax year commencing on or after January 1, 2027, but
Page 3, Line 19before January 1, 2029, an eligible taxpayer is allowed a credit
Page 3, Line 20against the income taxes imposed by this article 22 for the
Page 4, Line 1purchase price of one or more firearm safety devices that are
Page 4, Line 2purchased in an eligible transaction; except that the maximum
Page 4, Line 3amount of the credit that may be claimed by an eligible taxpayer is two hundred dollars.
Page 4, Line 4(b) (I) An eligible taxpayer is allowed one credit per
Page 4, Line 5income tax year and must claim the credit in the income tax year
Page 4, Line 6in which the eligible taxpayer purchases the firearm safety device.
Page 4, Line 7(II) In addition to any other information required by the
Page 4, Line 8department, in order to claim the credit, an eligible taxpayer
Page 4, Line 9shall file with the eligible taxpayer's state income tax return
Page 4, Line 10receipts or other documentation that reflects the purchase
Page 4, Line 11price of the firearm safety device and shows that the purchase price was paid by the eligible taxpayer.
Page 4, Line 12(III) The aggregate amount of all tax credits that may be
Page 4, Line 13claimed in an income tax year must not exceed five million
Page 4, Line 14dollars. The tax credit must be claimed on a first-come, first-served basis.
Page 4, Line 15(4) If the amount of the credit allowed under this section
Page 4, Line 16exceeds the amount of income taxes otherwise due on the
Page 4, Line 17eligible taxpayer's income in the income tax year for which the
Page 4, Line 18credit is claimed, the amount of the credit not used as an offset
Page 4, Line 19against income taxes in the current income tax year may be
Page 4, Line 20carried forward and used as a credit against income tax
Page 4, Line 21liability in subsequent years for a period not to exceed five
Page 4, Line 22years and must be applied first to the earliest income tax year
Page 4, Line 23possible. Any credit remaining after the period may not be refunded or credited to the eligible taxpayer.
Page 5, Line 1(5) The executive director of the department may adopt rules to implement this section.
Page 5, Line 2(6) This section is repealed, effective December 31, 2038.
Page 5, Line 3SECTION 2. Act subject to petition - effective date. This act
Page 5, Line 4takes effect at 12:01 a.m. on the day following the expiration of the
Page 5, Line 5ninety-day period after final adjournment of the general assembly; except
Page 5, Line 6that, if a referendum petition is filed pursuant to section 1 (3) of article V
Page 5, Line 7of the state constitution against this act or an item, section, or part of this
Page 5, Line 8act within such period, then the act, item, section, or part will not take
Page 5, Line 9effect unless approved by the people at the general election to be held in
Page 5, Line 10November 2026 and, in such case, will take effect on the date of the official declaration of the vote thereon by the governor.